Although we often do not admit it, it is common to worry about money, especially when economic prospects are not promising.
In times when inflation seems to increase ever more often than before and the Bank of Namibia’s Monetary Policy Committee is likely to announce another rate hike soon, it is only expected that the worries that come with these impacts begin to protrude.
It is undeniable that inflation has increased expenses and these increases are not met by an increase of incomes. Further, due to the reduction in purchasing power, the result of increased inflation is a reduction in the quality of life for many people. The impacts are also undeniable as there is a rise in salary increase related talks for many employees.
To help curb the worry associated with high inflation it is important to understand that there will be financial aspects that are within your control, and those that simply happen without your input. Once you establish that fact, you can clear that fog and begin to plan around uncertain financial events without blaming yourself for its status and causing yourself worry.
One of the techniques that I have continuously emphasised on in this series is financial planning through budgets. This technique will prove true for dealing with worries related to inflation as well.
The difference in your normal budget and one that is meant to reduce the stress associated with high inflation, is the accommodation of the fact that your normal expenses have gotten more expensive. You may also need to cut out some of the costs you previously had to accommodate the higher prices of some basic goods.
A more practical approach to dealing with the worries of high inflation is buying in bulk or substituting. If you spot a promotion that allows you to get more for less or are just able to buy more items at once in order to save on future purchases, then do not hesitate to take advantage of those opportunities. Buying in bulk allows you to miss the future increases in price for the product. Settling for alternatives that cost less also has the same effect.
One thing that we can take away from the worrisome financial situations, is the ability to learn how to better plan our finances. So as much as this is currently a burden, there are a couple of positive attributes that are protruding from it, and we will continue to apply these even in the absence of our worries.
Keep in mind that changes in inflation are part of economic cycles and the one certainty about cycles is that the wheels are bound to change, and the current situation will turn with them for the better.
*Justine Domingues an eligible CA(NAM) with a drive to make financial education widely available. She is the founder of Financial Zula, a Youtube channel that focuses on making financial education available. For more information, please check-out “Financial Zula” on Youtube.
